Government cuts impact on Emap’s bottom line

Business-to-business publisher Emap, which owns titles including Retail Week and events such as Cannes Lions, reported pre-tax profits of £27m for the 12 months to 31 December 2010. The figure is only slightly up on the £25m figure for the first nine months of 2009.

Emap Connect, the company’s exhibition arm which includes events such as Cannes Lions, reported a significant fall in pre-tax profits in 2010.

Government spending cuts have hit the company’s revenues in its magazine publishing and conferences division, Emap Networks, where revenues fell from £17m to £14m. The company said the decline was “wholly attributable” to the impact of government spending cuts on titles in the health and local government sector.

The company said that pre-tax profits had been hit by exceptional items totalling £22m, the most notable being a £17m loss on the sale of Professional Beauty magazine and show.

Total revenue remained almost flat year-on-year at £244m, with Emap’s Middle East operation, data, and events and exhibitions businesses doing best of all.

Emap Inform, the division home to magazines including Retail Week and Drapers, saw revenues fall by almost 12 per cent year-on-year to £53m.

Emap added that the raising of pay walls around a number of its magazine websites had led to 20 per cent year-on-year growth in new subscription business.

“The group operated within its covenant limits at all times during the year under review,” the company said. “The directors continue to forecast that the group will continue to operate within those limits for the forseeable future.”

Emap is jointly-owned by Guardian Media Group and private equity company Apax.

Meanwhile, Centaur Media, according to the financial press, is to shed 60 jobs, about 10 per cent of its workforce. The cuts are a result of the company ceasing publishing print editions of its titles New Media Age and Design Week.

Calum Taylor has also resigned as head of Centaur Exhibitions after a 22-year stint with the company. His departure coincides with a restructure which will see the company split into three operating divisions: Business publishing, businessinformation and exhibitions.
 
Former Emap Inform CEO Simon Middelboe will lead Centaur’s new Business Information Division from 1 August.
 
“These restructuring initiatives will substantially improve the balance of the group’s revenue profile, our rate of growth and margins,” Centaur Media Group Chief Executive Geoff Wilmot said.
“The strengthening of the management team and operational changes are the next step in our repositioning to take full advantage of the significant growth opportunities in digital media and events. They will also reinforce our focus on building high-value subscription revenues and provide a robust operational structure to support acquisitions.”
 
Centaur reported a year-on-year increase in event revenues for the first four months of the year, buoyed by its Business Travel and National Homebuilding and Renovating Shows.
 
Do you have news for CN? Email: pcolston@mashmedia.net

Paul Colston

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Paul Colston

Managing Editor, Conference News & Conference & Meetings World.

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